CVS Health price target raised to $85 from $80 at BofA

BofA raised the firm’s price target on CVS Health (CVS) to $85 from $80 and keeps a Buy rating on the shares. Heading into Q1 earnings, there were some concerns that Aetna’s progress could be at risk following UnitedHealth’s (UNH) recent reduction in forecasts from rising medical costs, but CVS’ profit in the Healthcare Benefit segment was better than expected due in part to the rationalization of members in 2025, the analyst tells investors. The firm, which remains “optimistic” on the Aetna margin recovery story and believes CVS can add $3-$4 of earnings power to its current base over the next few years, views the updated 2025 adjusted EPS targets as “achievable” and thinks shares can re-rate higher over the course of the year.